The limited activity of developers in 2024 and 2025 to act as a remedy for the lower demand
The beginning of 2024 saw a decrease in both demand and supply in leading regional markets. Approx. 31,000 m² of new office space was delivered. This indicates a scenario where the average annual new supply for 2024 and 2025 will be approx. 70% lower than the average from 2016-2020.
After a record-breaking year in 2023, the market saw a correction, resulting in a significantly lower quarter-to-quarter demand in Q1 2024. At the same time, the renegotiation level stood at 47%, with pre-lets in projects under construction dropping to zero.
During the first three months of 2024, the vacancy rate was 17.8%, with buildings aged over 10 years seeing the greatest impact.
